Press Information Bureau

Government of India

Ministry of Corporate Affairs

03-September-2012 17:07 IST

New Legislation for SFIO

The Expert Committee under the Chairmanship of Sh. Vepa Kamesam was constituted by the Ministry on 23.02.2006 to advise on various issues concerning the Serious Fraud Investigation Office (SFIO) particularly the nature of legislation and changes required in the existing laws, to enable effective functioning of SFIO. The Committee has since submitted its report to the Ministry on 29.04.2009. Based on the report, in the Companies Bill, 2011 recognition to SFIO through clause no. 211 and empowering it with powers to investigate into the affairs of the company through clause no. 212 has been provided.

This information was given by Minister of State for Corporate Affairs Shri R.P.N. Singh in reply to a written question in the Rajya Sabha today.

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Recognition and empowerment of SFIO strengthens statutory investigatory powers over corporate affairs under company law. The Expert Committee recommended statutory recognition and strengthened investigatory powers for the Serious Fraud Investigation Office; those recommendations were incorporated into the Companies Bill, 2011 to provide formal recognition to SFIO and empower it to investigate the affairs of companies.